ABS – Piraeus Bank applied for the inclusion of NPL securitization project “Sunrise III” under the “Hercules II” guarantee scheme (mononews)

  • The transaction corresponds to a total GBV of €506m, with a senior tranche of €200m
  • The portfolio consists of mortgages, corporate and consumer loans with 50% of them having been restructured during the pandemic

ABS – Synthetic securitizations will be the banks’ new tool for managing their NPL stock (mononews)

  • “Hercules II” state guarantee program will end next October, having exempted banks from NPLs amounting to almost €50bn
  • Synthetic securitizations include performing loans and allow banks to keep the portfolio under their management


Banking – Starling Bank withdraws its application to obtain the Irish banking license to offer its services in Ireland (RTE)

  • The UK based digital lender, which has started the process to obtain the Irish banking licence in 2017 in order to pursue high return projects, decided to withdraw its application at the final stage in light of the forecasted lower added value of the Irish subsidiary

Banking – Finance Ireland Raised €50m in Fresh Equity from UK Asset Manager M&G (The Irish Times)

  • New equity investor M&G, along with existing shareholder, Pimco, had bought out ISIF (Irish Strategic Investment Fund) and a group of other small investors
  • The two investors committed €50m of new equity to the business as it continues to grow

United Kingdom

Banking – LendInvest issues new retail bonds at 6.5% yield (altfi)

  • LendInvest, which focuses on property finance and buy-to-let loans, is marketing new 6.5% coupon bonds to both institutional and retail investors
  • This is LendInvest’s third issuance of such bonds, with the previous two being substantially oversubscribed by investors
  • LendInvest issued its first retail bond back in 2017 paying 5.25%, followed by a 5.375% coupon bond in 2018
  • The new bonds are expected to be listed on the London Stock Exchange’s Orb market in August
  • Bond issuance complements LendInvest’s funding via warehouse / securitisation (Mortimer series) and Real Estate Opportunity Fund


Loan Sale – Sabadell launches, advised by Alantra, ‘Cora Project’ onto the market (Cincodías)

  • The portfolio includes secured SME´s loans with collaterals valued at €310m
  • There are at least 10 interested potential buyers, among which stand out Axactor, Apollo, Fortress and CPPIB

Banking M&A – Santander and Banorte compete for Citigroup banking business (El Economista)

  • According to Moody’s, the highest bids amount to $4bn
  • Santander seems to be the most likely buyer since it would be one of the most benefited candidates for its large experience in consumer portfolio

Real Estate – HIP (Blackstone) buys the METT Marbella to turn it into a five-star hotel (El Confidencial)

  • Hotel Investment Partners (HIP) has reached an agreement with the Mazabi family office to purchase the METT Marbella Estepona Hotel
  • With this deal, HIP consolidates its presence in “Costa del Sol”

Real Estate – Fattal Group negotiates with KKR and Dunas Capital to acquire six hotels in the Balearic Islands (Cincodías)

  • The deal is valued at €165m and will take place during the second half of the year
  • The transactions will be financed through a Fattal Group’s funds and a loan of approximately €95m

Real Estate – Beka Finance acquires Haya Real Estate (EjePrime)

  • Cerberus disinvests in Haya Real Estate, the prominent agent in the Spanish market on structuring and managing securitization and banking assets funds
  • Up to now, Haya has managed a portfolio with collateral assets valued at €208bn


Macro – CPI annual rate increases to 8.7% in June 2022 (INE)

  • The highest recorded rate since December 1992, which is mainly driven by the increase of the annual rate of the index for energy products by 4.4%, from May to June 2022
  • In June 2022, the Portuguese Harmonised Index of Consumer Prices (HICP) annual rate was 9%, once again the highest recorded value since 1996
  • Excluding energy and unprocessed food products, the HICP increased by 6.6% in May, above the corresponding rate for Euro area

Credit – Portuguese banks are the ones most exposed to sovereign risk in Europe (Jornal Economico)

  • According to an analysis carried out by DBRS Morningstar, Portuguese banks are exposed to €56bn in sovereign risk including loans and debt securities
  • This large exposure corresponds to 18% of total assets, of which 7.7% is towards Portuguese sovereign risk and the remaining mainly spread across Spanish, Italian, Polish and Irish
  • DBRS sample includes CGD, Millennium BCP, Banco BPI, Banco Montepio and novobanco

Real Estate – Blackstone purchases portfolio of 15 logistics properties from M7 for €125m (Jornal de Negócios)

  • This is the second logistics portfolio Blackstone has acquired recently, after acquiring 20 logistics properties from GNB Real Estate for €208m in May
  • The asset manager acquired the portfolio following its strategy in the logistics segment, underpinned by a high demand for distribution warehouses in Portugal


Credit – Mortgage providers are not yet cutting rates, even if interest rates fall (fd)

  • While market interest rates have been falling for a few weeks, some lenders had even raised their rates over the last week, although most left rates unchanged
  • They are also still processing a boom in applications from earlier this year
  • Overall, this leads to a slowdown in mortgage rate rises

Credit – NIBC sells its offshore energy portfolio (NIBC)

  • NIBC sold the remaining part of the originally €1.5bn portfolio
  • The bank is thus taking a step closer towards its laid out ESG aims